Huawei's Low-Cost Phones Find Niche in U.S. Market

1/11/2012 3:00PM

Security concerns have stymied Huawei, the world's second-largest maker of telecom devices, from selling smartphones to U.S. markets. But the company's expanding device business has found a niche with American consumers. (Photo: Getty Images)

This transcript has been automatically generated and may not be 100% accurate.

I ... islands ... that are making headway and ... try to stay here a FAQ so What's your being here ... then on the way you ... pronounce the name of this company because first it's hard ... to pronounce that certainly the making of what we can ... call Huawei that's the key for now sit in the US and I guess it's easy enough light to China town ... little while when he is ... one of the world's biggest ... telecom companies in the second biggest maker of telecom equipment ... they've had a lot of trouble getting into that market here in the US ... because it's a national security ... the Chinese right so ... there are ... folks in Washington have raised national security concerns ... op but with this company also makes a really ... cheap smartphones and ... quietly those smartphones have had a fair man of success on the low end of the market and the US was really there that fast says her love for the ... passing of growth that I hear about in this industry that really is bad area of ... trying to get to the Lord cost consumers that are really making headway in an area that there's ... yes I mean for a rare bright for the telecom industry ... you know that ... low low people with low incomes of the cedar ... folks who have had ... within slowest to adopt smartphones because that the ban marks Spencer ... but once people to adopt smartphones ... you know ... the phone companies typically are able to charge them more and they use more ... of online services ... on and so that you know that adoption on built on below and is people call it it's really starting to happen ... now I the lovely sounds like a smartphone that ... I would refuse to even look like it's normal and trying to write and write yet and so I mean they've gotten mixed reviews and said that ... you know they've ... they've lately gotten better reviews and the company now also wants that kind of getting to other ... private depressed years in the US so you know it's the best ... they can use what they said would be the thinnest ... world's thinnest smartphone ... it is unlikely to be a low-cost thread ... the the the the the it thing with the finance wanna know I mean the end of ... well there are like less than a hundred bucks without are without a car with an old times with no content so ... that ... you know it cricket ... and that masterpiece yes they've been really excellent ... last that seems new to the smartphone lot less than six hundred dollars ... right now on to other smartphones ... I keno everything ... is intense the rate that is the selling rate for anyone actually only went into the astringent and in the story is ... that you now go to some of these ... two on his cricket and MetroPCS stores and talk to people buying ... plywood smartphones ... I'm and ... in a lot of cases these are people who didn't have an internet connection at home ... and it was really the main way that they got my ... which you know for for that actually for the carriers like MetroPCS and cricket that ... kind of ... I'm ... in the wings of a difficult thing to deal with the Kurds ... if you know if you don't have internet at home that means you're using your phone more for less than if you cannot have a bigger home office ... so these folks are putting up a lot of strain on their networks a live wire house the is the isthe you know and and baby there their spending billions of dollars on on on ... because that's ... how difficult will it be for why wait to hang on ... to this the whole market with its carved out a person of the lid of the leader right now ... well I'm ... definitely others are getting into the low-cost smartphones a setback in particular ZTE and other Chinese company ... has been ... rolling out ... low-cost smartphones and no marketing them about with the ... cricket and boost which is ... Sprint's prepaid brand ... um so it's definitely a part of the market that's ... that's heating up and and you know even on that ... the contacts I've read a TNT even get an older I phone for free ... um so ... I think a lot of ... a lot of ... people in the telecom space are looking at ... I'm ... you know lower income people as ... an